King Pharmaceuticals (KG)

King Pharmaceuticals, Inc. (KG) is a vertically integrated pharmaceutical company that focuses on developing and marketing branded prescription pharmaceutical products. The company's activities are focused on three specialty driven markets neuroscience, hospital and acute care medicines. Its key drugs are Altace (for cardiovascular treatment), Levoxyl (for thyroid disorders), Sonata (insomnia), Skelaxin (skeletal muscle relaxant), and Thrombin-JMI (blood product). In addition to these branded product offerings, KG also provides contract-manufacturing services by extending its idle manufacturing facilities to other pharmaceutical and biotechnology companies. The company also receives royalties on the sale of products like Adenocard (a cardiovascular drug) and Adenoscan (for coronary artery disease). King reported total sales of $2.14 billion in 2007, up 7.5%.

On August 22, 2008, King Pharmaceuticals announced that it has extended an all-cash offer to acquire all the outstanding shares of common stock of Alpharma, Inc. for $33 per share. The all-cash offer represented a 37% premium over Alpharma's closing stock price on August 21, 2008, and a 49% premium over Alpharma's closing stock price on August 4, 2008, the date of King's initial written offer to Alpharma. However, the Alpharma Board of Directors rejected the offer based on the view that the proposal is not in the best interests of the company's shareholders. King intends to take the offer directly to Alpharma's shareholders if further negotiations with the Board do not work out. The company hopes to close the deal by year-end. Through this acquisition, King is looking to create a diversified specialty pharmaceutical company with greater commercialization capabilities, an expanded portfolio of pain management products and a strengthened pipeline which would include multiple platform technologies.

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